JSW Infra shares gain 3% as Q1 profit growth meets estimates; details here

JSW Infra shares rose 3 per cent after it posted a jump in its net profit for the June quarter of the current financial year (Q1FY26)

Shares of JSW Infrastructure rose over 3 per cent on Wednesday after the company posted a jump in its net profit for the June quarter of the current financial year (Q1FY26).  

 

The port and port services firm's stock rose as much as 3.56 per cent during the day to ₹328.5 per share. The stock pared gains to trade 1.8 per cent higher at ₹323 apiece, compared to a 0.44 per cent advance in Nifty 50 as of 12:21 PM. 

 

Shares of the company have risen for the third straight session, and at day's high, the stock was at the highest level since January 6 this year. The counter has risen 1.5 per cent this year, compared to a 6.2 per cent advance in the benchmark Nifty 50. JSW Infra has a total market capitalisation of ₹67,809.05 crore, according to BSE data.   

 

JSW Infra Q1 results 

The Sajjan Jindal-promoted firm reported a 31.54 per cent Y-o-Y rise in net profit for Q1FY26, coming in at ₹384.68 crore. The growth was supported by a 5 per cent increase in cargo volumes, which reached 29.4 million tonnes during the quarter.

 

The company’s revenue from operations for the quarter also grew by 21.2 per cent Y-o-Y on the back of higher volumes. On the back of revenue growth, the earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased by 10 per cent YoY, to ₹671 crore. 

 

The cargo volume increase in the quarter was driven by the robust performance at the company’s coal terminals, along with contributions from interim operations at the Tuticorin Terminal and the Jawaharlal Nehru Port Authority (JNPA) liquid terminal. The growth was partially offset by lower cargo volumes at the iron ore terminal in Paradip. In Q1 FY25, the cargo volumes handled by the company had grown by 9 per cent Y-o-Y. 

JM Financial on JSW Infra Q1 results

The Q1 performance was largely in line with estimates, with the management maintaining its FY26 volume growth guidance of 10 per cent, which JM Financial considers achievable. The brokerage views the company as a strong proxy for India’s steel demand and the rising coastal coal movement.

 

In addition to the announced capex pipeline of ₹40,000 crore, JSW Infra is estimated to have capacity to incur annual capex of ₹3,000–4,000 crore while maintaining its net debt-to-Ebitda ratio below the target of 2.5x, JM Financial said. With the commissioning of key projects such as Jatadhar and Keni, along with ongoing capex, JM Financial projects Ebitda could reach ₹8,000-10,000 crore by FY30. 

 

The brokerage also notes that if a QIP is undertaken to reduce promoter stake, it could support an additional ₹25,000 crore of capex. This could potentially add ₹90-100 per share to the target price, the brokerage. It has a 'Buy' rating with a target price of ₹385 per share.